Reinforcement TheoryReinforcement Theory is counter to goal-setting theory. It proposes that behavior is a function of itsconsequences.1. Reinforcement theory argues that behavior is externally caused.2. What controls behavior are reinforcers, which are consequences immediately following a responsethat increase the probability that the behavior will be repeated.3. Reinforcement theory ignores factors such as goals, expectations, and needs.4. It focuses solely on what happens when a person takes some action.5. How can the concept of reinforcement be used to explain motivation?a. People will most likely engage in a desired behavior if they are rewarded for doing so.b. These rewards are most effective if they immediately follow a desired response.c. Behavior that isn’t rewarded or is punished is less likely to be repeated.6. Managers can influence employees’ behavior by reinforcing the work behaviors they desire.Open Book ManagementThis is a motivational approach in which an organization’s financial statements (the “books”) are opened toand shared with all employees.1. The goal of open-book management is to get employees to think like an owner by seeing theimpact their decisions and actions have on financial results.2. To be effective, employees have to be taught the fundamentals of financial statement analysis andwhat the numbers show.3. The style of management demands for involvement of employees in all decision making fororganization involving the transparency of financial statements.4. Employees may be treated as business partners so productivity and profitability is enhanced.